Scientific Games becomes Light & Wonder

Article by : Divya Gandotra Dec 2, 2023

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Scientific Games Corporation has undergone a major transformation, shedding its former identity to emerge as Light & Wonder, Inc. This rebranding marks a strategic shift for the company, reflecting its ambition to lead the global IGaming scene across various platforms.

The Evolution of Scientific Games

Scientific Games, originally known as Bally Manufacturing, Inc., has traversed a transformative journey over the years. From Bally Gaming to Bally Technologies and finally merging with lottery supplier Scientific Games, the company has continuously adapted to the ever-changing demands of the IGaming industry. The recent unveiling of Light & Wonder signifies a new phase in the company’s evolution.

Embracing a Cross-Platform Vision

The shift from Scientific Games to Light & Wonder is not merely a change in name but a bold strategic move. Shedding legacy businesses, the firm is paving the way for a more focused approach to meet the evolving demands of the gaming landscape.

The company has orchestrated a series of strategic moves to position itself as the leading cross-platform game company. This included the planned divestiture of its Lottery and Sports Betting Businesses, setting the stage for a new era.

At the heart of Light & Wonder’s new identity is a well-crafted approach that seeks to seamlessly deliver captivating game franchises to players worldwide, transcending the boundaries of land-based casinos, online venues, and mobile devices. Light & Wonder’s commitment extends to the real money and free-to-play social gaming markets, promising a versatile and engaging gaming experience across all platforms.

Barry Cottle, the CEO of Light & Wonder, expressed enthusiasm about the company’s future trajectory. He emphasised the potent strategy that underpins the rebranding—a strategy designed to establish Light & Wonder as the preeminent cross-platform game provider. Cottle went on to say that the new identity was not just a name but a reflection of the company’s determination to inspire its team to craft exceptional products for players globally.

Financial Triumphs

Light & Wonder reported robust financial performance amid these strategic shifts in Q4 2021. The company exceeded analyst expectations with a consolidated revenue of $580 million, showcasing a notable 21% year-over-year increase. The full-year 2021 consolidated revenue amounted to $2.15 billion, marking an impressive 27% improvement.

Operational achievements in Q4 were notable, with the gaming business experiencing a substantial 30% year-over-year revenue growth. The IGaming sector contributed $54 million in the quarter, highlighting a positive trend. Additionally, SciPlay, a division of Light & Wonder, achieved its second-highest revenue quarter at $154 million.

A pivotal moment in Light & Wonder’s journey was the sale of Scientific Games’ Lottery business to Brookfield Business Partners for a staggering $5.8 billion. This strategic move played a crucial role in Light & Wonder’s financial restructuring, significantly paring down the company’s debts. What was once an $8.8 billion debt burden has now been drastically reduced to a mere $4 million post the lottery divestiture.

Embracing Digital Focus

Light & Wonder’s digital focus is apparent in its emphasis on IGaming and online casino products. As part of its transformative journey, Light & Wonder introduced lnw.com, a new digital gateway that serves as a portal showcasing a comprehensive array of offerings. This online hub provides access to land-based casino products, technology, and services. Players can explore their favourite games, cutting-edge platforms, systems, player account management, and hardware seamlessly integrated into one online destination.

Client Centric Commitment

Addressing concerns about the transformation, Light & Wonder reiterated its commitment to existing clients. The company emphasised that the change in focus and rebranding will not disrupt existing partnerships. With a client base exceeding 130 entities, the company emphasises adaptability to diverse needs, spanning brick-and-mortar establishments, online operators, and mobile gaming platforms.

Conclusion

The rebranding of Scientific Games to Light & Wonder signifies more than just a name change; it is a game-changer. The rebranding, digital-first approach, financial restructuring, and debt reduction positioned the company for sustained growth. As Light & Wonder steps into this new era, it does so with a resolute commitment to delivering top-tier gaming experiences across the globe and epitomising its vision of becoming the leading cross-platform game provider.